Pullback Provides Entry Point In Chemours; Citi Upgrades

Citi analyst P.J. Juvekar sees now as the perfect time to buy Chemours Co CC stock, as he upgraded his rating to Buy with a $45 price target.

“We think the recent pullback offers a good entry point. Our investment thesis is primarily based on: 1) Excellent regulation driven growth for fluorochemicals, particularly Opteon adoption and 2) To a lesser extent on a gradual improvement in the TiO2 cycle,” Juvekar said (check out his track record here).

Specifically highlighting the Opteon opportunity, Juvekar pointed out how Opteon HFO adoption has been much stronger than expected. "More than 50% new US and 100% of EU vehicles transitioned to HFO technology by the end of 2016 with expected doubling of vehicle adoption by year-end to 50mm.”

Further, Juvekar sees upsides coming “from regulation-driven replacement of older refrigerants and optionality to raise the dividend or buyback shares following near-term payment of the PFOA liability settlement of $335mm.”

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